Currently browsing posts filed under "Chase Coleman ’97"
From the Wall Street Journal via Dealbreaker:
Charles “Chase” Coleman, the hedge-fund manager famed for his early bets on startups including Facebook Inc. and Zynga Inc., has suffered big losses this year as the technology boom wanes, according to people familiar with the matter. Mr. Coleman’s Tiger Global hedge fund plunged 22% in the first quarter, making it one of the industry’s worst performers this year, the people said. The losses amount to more than a billion dollars on paper for Tiger Global’s hedge fund, and potentially more for its larger private-equity and venture-capital operation…A former Williams College lacrosse player and a descendant of New York founder Peter Stuyvesant, Mr. Coleman got a job working for hedge-fund veteran Julian Robertson, who was the father of one of his childhood friends. He later struck a deal with Mr. Robertson for financial backing to start his own firm in 2001 in exchange for a cut of fees earned going forward.
Not the sort of news that Adam Falk wants to read about during a capital campaign! Fortunately, Coleman is so wealthy that the amount he gives to Williams (and I am sure they are hoping for a check of $50 to $100 million) won’t be affected much by this set back.
Viva the 0.001%!
I will take “News that makes the Development Office happy,” for $200, Alex.
Are there other Ephs on the full list of 25 besides Andreas Halvorsen ’86 and Chase Coleman ’97?
Who in God’s name is Chase Coleman? He’s someone, apparently… And he’s clearly doing something right—see all those rooms above? Yeah, that’s Coleman’s home. It has probably changed a bit here or there since publishing heiress Veronica Hearst owned it, but still—a $30M Upper East Side Mansion is a $30M Upper East Side mansion. Not too shabby, kid!
And New York Magazine snarks:
How rich is Chase Coleman? First of all, he has the unique distinction of being both Old and New Money rich, so just for starters you want to take your expectation of what “rich” is and double it. A descendant of Peter Stuyvestant — the last Dutch governor of New York, the guy who actually built the wall that Wall Street is named for — Chase’s full name is not only triple barreled but has a “III” after it — Charles Payson Coleman III — which by our math triples the value of his name.
Even within the exceptionally wealthy population of Williams alumni, Coleman has done well. In fact, I would wager that he, alone, made more money last year than the sum of every other member of the class of 1997.
Does that bother me? No! Coleman is both lucky (not every Eph gets to work at Tiger Management) and talented. But others had similar opportunities and made different choices. Coming out of Williams, you are unlikely to get (self-made) rich unless you go into finance…
And congratulations to Chase and his wife Stephanie, who are celebrating their sixth anniversary today.
*Yes, “billionaire” would be rounding up from $900 million, but consider that Coleman’s Tiger Global Management LLC invested $20 million in LinkedIn, the career-oriented social networking site that plans an IPO this year, and it’s not an unreasonable guess.
EphBlog board member Aidan Finley ’04 sent in this Wall Street Journal article three months ago.
It’s a schoolyard brawl that’s leaving some of Wall Street’s titans bruised and others thumping their chests.
The bull-bear clash is over for-profit education stocks, or publicly traded companies offering secondary education to students, many of whom rely on government financial assistance. Betting for or against the companies has led to some of the year’s biggest gains and most painful losses.
On the “bull” side are well-known hedge funds such as Tiger Global Management LLC, Maverick Capital Ltd. and Lone Pine Capital LLC. Some have praised the companies, citing rising revenues as new groups of people, often adults, seek to improve their chances of getting a job through education.
Lately, though, several for-profit college operators have come under fire from government bodies who say the schools are pushing prospective students to take on heavy debt while failing to prepare them for careers that allow the students to pay off the loans. Stocks like those of Corinthian Colleges Inc., Apollo Group Inc. and Strayer Education Inc. have tumbled in recent months.
Tiger Global, a fund run by Chase Coleman and seeded by Julian Robertson’s Tiger Management, had almost 9% of its $3.1 billion in stockholdings allocated to Apollo as of June 30, making it the fund’s single biggest stock investment, according to AlphaClone LLC, a firm that tracks disclosed hedge-fund holdings. Tiger Global started buying Apollo shares around the start of the year, according to a January letter to clients extolling Apollo’s “compelling expected return” over the next several years.
“We have conducted considerable due diligence, framing what we believe to be worst-case scenarios” related to any regulatory changes that might affect the company, Mr. Coleman wrote in the letter. He noted Apollo’s 21% share decline in 2009, calling the shares “depressed.”
Six weeks after this article came out, Apollo “blew up,” to use the technical quant term.
Depending on when he purchased those shares and when/if he has sold them, Coleman’s ’97 loss has been around $100 million.
What do our Eph investors think about APOL as a stock investment today?
According to DealBreaker, Andreas Halvorsen’s ’86 Viking Global was up 8.35% on $6.6 billion in assets through July 2. According to Market Folly, Chase Coleman’s ’97 Tiger Global was up 6.8% through March 31 but, probably because of heavy short exposure in financials, down to -8.1% by April 30.
1) Does anyone have a better update on Tiger? If they maintained their financial short, they could be in trouble.
2) Does anyone have copies of their quarterly letters that they would be willing to share with us? Reading Halvorsen’s 3td quarter letter last year was quite educational.
There seems to be stuff going on in the global financial markets. I don’t follow this topic that closely, so who knows? Anyway, Dealbreaker provides some rumors on the performance of the two largest Eph-connected hedge funds: Andreas Halvorsen’s ’86 Viking and Chase Coleman’s ’97 Tiger Global.
Do any of the other funds listed have significant Eph connections?
For Viking to be flat year-to-date is a stunning achievement in this environment, especially after making 40% in 2007. Even Tiger is doing much better than many other large hedge funds. If we combine 2007 and 2008, then both Halvorsen and Coleman have done remarkably well.
But there is a long way to go before December 31 . . .
One of the financial services that I subscribe to reports on the holdings of Chase Coleman’s ’97 Tiger Global Management hedgefund.
Charles Coleman founded Tiger Global with the blessing of [Julian] Robertson in 2001 to focus on Technology stocks. Coleman has stayed true to his roots as Technology stocks make up almost 50% of his $4.7B reported portfolio. Thanks to a new investment in Visa (V) and a modest increase to an existing investment in MasterCard (MA), the firm also has a healthy investment in credit card issuers.
I heard through the finance grapevine that Robertson is Chase’s godfather. True? Below the fold are new (equity) positions as of June 30, 2008. Comments?
Our hit count seems higher in the last few days. Much of hit seems to be associated with searches for “Chase Coleman.” Why the sudden interest? Perhaps because Coleman, class of 1997, is on Forbes list of next generation billionaires.
Noting that the world’s current crop of billionaires has plenty of money but “not much youth”, the American magazine said the average age of the 1,125 people on Forbes’ list of the world’s wealthiest is 61.
“…It’s impossible to predict exactly who will replace them, but don’t bet against the following people. All are young, extraordinarily successful and have ambitious plans for the future,” the magazine said in an accompanying article published in its online edition.
Forbes itself notes:
Hedge fund manager Chase Coleman’s age, 33, belies his exceptional ability to manage money. His Tiger Global fund reportedly returned over 70% after fees last year, a performance over six times better than the hedge fund average.
Is Coleman really a billionaire? Tough to tell, but you can be sure that the Alumni Office is curious.
Here is more from Forbes.
This direct descendant of early New York Gov. Peter Stuyvesant learned from one of the best. Coleman worked under billionaire Julian Robertson Jr. at Tiger Management. Robertson has an astounding track record of training rich-listers. Other “Tiger Cubs” already on our list of the world’s richest include Lee Ainslie III and Stephen Mandel. Coleman is well on his way to joining them. According to Bloomberg, Coleman’s fund, Tiger Global, returned over 70% after fees last year. Compare that with the 11% return that hedge funds averaged last year. Coleman’s amazing performance means a big paycheck: One estimate has him taking home up to $400 million.
But you need to share that money with your partners/employees, pay your taxes, and so on. Pretty soon, you’re struggling just to get by . . .
Eph alums (and hedge fund superstars) Andreas Halvorsen ’86 and Chase Coleman ’97 had pretty decent years in 2007, making $520 million and $400 million respectively. Of course, next to the $3.7 billion John Paulson made, that is mere pocket change.
Which Eph made the most money in 2007? Excellent question. My guess for 2006 was Chase Coleman ’97. Last December I thought for that Mike Swenson ’89 might have a shot. But, be serious! Ten million (more or less) is nothing to sneeze at but is not enough for bragging rights among the richest Ephs.
In an article about legendary hedge fund manager Julian Roberston, Fortune reports:
Robertson has for years had a well-deserved reputation for spotting and developing talent. During his glory years managing the Tiger fund, the North Carolina native surrounded himself with bright, highly competitive, young men – often from southern universities – and worked them hard for their best ideas. Known as the “Tiger Cubs,” a number of them graduated and became extremely successful hedge fund managers in their own right, including John Griffin of Blue Ridge Capital, Lee Ainslie of Maverick Capital, Andreas Halvorsen of Viking Global, and Steve Mandel of Lone Pine Capital.
There was a new generation of talent in place at Tiger when Robertson unwound the fund in 2000, and he decided to give some start-up money to a handful of the sharpest analysts on staff and mentor them. These were the first “Tiger Seeds,” as he calls the money managers currently affiliated with the firm. “I wanted to continue to have some young people around,” says Robertson. “I didn’t want to go from age 70 to Methuselah. So we kept the space, which seemed sort of silly at the time, and we seeded a few guys who had worked for us in starting new hedge funds. And this has succeeded beyond my wildest dreams. It’s been an unbelievable success. And it’s happened because of them. We selected good people, but they are the ones that have manufactured the record not me.”
Two of the “Tiger Seeds” with the longest and best records are Bill Hwang of Tiger Asia and Chase Coleman of Tiger Global, each of whom were in the original group of new funds to set up shop at Tiger’s office at 101 Park Avenue near Grand Central Station in midtown Manhattan. Hwang’s fund returned 55% in 2007 before fees and has a seven-year average of 40.4%. Coleman made a gross return of 91% for Tiger Global last year and his seven-year average return is 43.7%.
To average 43% from 2001 through 2007 is simply stunning. Bloomberg reports similar numbers: “Chase Coleman‘s Tiger Global Management LLC in New York, which was backed by Robertson, returned 71 percent after fees, fund investors said.” The difference between the 91% raw returns and the 71% after fees return is, of course, Coleman’s revenue. Since hedge funds have very low expenses, almost all this revenue is profit.
But what are Coleman’s assets? Tough to say, but judging from the amounts that the other “Tiger Cubs” are managing (see the Bloomberg story), $5 billion is not a bad estimate. And, 20% on $5 billion is . . . let me get out my calculator . . . carry the “1” . . . place the decimal . . . . Oh my goodness! Chase Coleman’s firm made about $1 billion dollars last year. Comments:
This Deal Breaker entry features two Ephs.
To be honest, if the headline involves Katie Couric we’re probably not reading the story. That’s why we skipped Page Six’s scoop on Katie Couric’s new “boy toy” Brooks Perlin. But we shouldn’t have. The thirty-three year old Perlin is a three-time hedge fund washout, according to the Sixers.
Not only has Perlin worked for three Connecticut-based hedge funds in the last five years, he hasn’t had a full-time job since September, a source told the Post’s Marianne Garvey. He last worked at Keel Capital Management in Stamford but left to start a Queens-based company that creates environmentally friendly, green-building products. Before that, the spin-class-obsessed triathlete worked for a short time at both Pequot Capital Management and Grange Park, a hedge fund that’s now closed.
The Sixers also note that Perlin has a history of dating older women so it may be slightly inappropriate to apply the “urban cougar” label to her. After all, cougars are predators and Couric may just be aging prey. But we have to admit we enjoyed underthecounter’s extended metaphor: “Dangerous animals stalk all corners of Wall Street. Tiger Cubs come to mind, and although Chase Coleman might be hitting the ball out of the park, not all Tiger Cubs are quite so fearsome. The latest big hunt on the Street involves a cougar.”
Note to UTC: next time include sharks, dogs, hogs, cows, vultures and John Mack.
Not John Mack! To complete the Williams trio, you want the Eph who should have gotten Mack’s job as president of Morgan Stanley: limp-wristed Williams trustee Robert Scott ’68. See previous coverage of Perlin ’96 and Coleman ’97.
Today’s puzzler: Which is more impressive, dating Katie Couric or making a 9 figure income? Bicentennial Medals will be awarded in just 3 months . . .
Best comment in May? Jeff Zeeman:
No worries! EphBlog has that covered. What Eph made the most money last year? Not me! Could it have been Chase Coleman ’97?
City: New York
Firm: Tiger Global Management
One of the youngest members of the Trader Monthly 100, Coleman now manages roughly $2 billion in assets; his returns last year were in the neighborhood of 30 percent.
Estimated Income: $75-100 million
1) Does the listing of the big money makers include any other Ephs? The Alumni Office would like to know!
2) Trader Monthly is not the world’s most authoritative source, but, even if they are remotely accurate, Coleman must have done well. If I were Morty, I would recruit him to the trustees.
3) How does the math work? Well, if Coleman’s benchmark was the S&P 500 (which returned 13% in 2006), then he produced 17% in excess returns. On $2 billion, that would be $340 million in value creation for his clients. 20% of that (a typical hedge fund performance fee) would be $65 million. Add in a 1% fixed fee of $20 million, and you get $85 million total. I initially suspected that this was a (slight?) overestimate (rumors of returns and assets under management are often exaggerated), especially since Coleman needs to pay his (many?) employees. But, some further gossip suggested that, if anything, Coleman is doing even better than this. Impressive!
5) All of this raises the timely topic of income inequality. The short version of this story is that the rich are getting richer and that this is even more true the further out in the tail that you go. (Background here. See here for more technical details.) Even within the exceptionally wealthy population of Williams alumni, Coleman has done well. In fact, I would wager that he, alone, made more money last year than the sum of every other member of the class of 1997.
Does that bother me? No! Coleman is both lucky (not every Eph gets to work at Tiger Management) and talented. But others had similar opportunities and made different choices. Coming out of Williams, you are unlikely to get (self-made) rich unless you go into finance. Nothing wrong with teaching or military service or non-profit work (I have done all three!), but don’t whine about income inequality (at least in the Williams context) if you make those choices.
Or, better yet, whine here. If income inequality (at the high end, leaving aside poverty) bothers you in general, please explain why it bothers you in Coleman’s case specifically. Don’t begrudge the (self-made) wealthy their rewards unless you are willing to criticize one of our own.
What is wrong with a world in which rich, sophisticated investors want to pay lavish sums to Chase Coleman ’97 to manage their money?
Chase Coleman ’97 was married today.
Stephanie Anne Ercklentz, a daughter of Mai V. Hallingby-Harrison of Palm Beach, Fla., and Enno W. Ercklentz Jr. of New York, was married last evening to Charles Payson Coleman III, a son of Kim and Charles Payson Coleman Jr. [’72] of Old Brookville, N.Y.
Mr. Coleman, 29, is known as Chase. He is the founder and managing partner of Tiger Technology Management, a New York investment firm. . . . The bridegroom is a descendant of Peter Stuyvesant, the last Dutch governor of New York.
Currently browsing posts filed under "Chase Coleman ’97"